NOTE: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice.
Risk Disclosures: Investing in the stock market involves gains and losses and may not be suitable for all investors. Investment return and principal value of an investment will fluctuate and may be worth more or less than their original cost. Growth stocks tend to be more volatile than other stocks. Their prices tend to be higher in relation to earnings and may be more sensitive to market, political, and economic developments. Small capitalization and microcap stocks are subject to greater risk than larger capitalization stocks owing to such factors as limited liquidity, inexperienced management, and limited financial resources. The cost of borrowing money to leverage may exceed the returns for the securities purchased or the securities purchased may actually go down in value; thus, a strategy’s value could decrease more quickly than if it had not borrowed. Alger strategies use derivatives. A small investment in derivatives could have a potentially large impact on a strategy’s performance.
Investing in foreign securities involves risks related to the political, social, and economic conditions of foreign countries, particularly emerging market countries. These risks may include political instability, exchange control regulations, expropriation, lack of comprehensive information, national policies restricting foreign investment, currency fluctuations, less liquidity, undiversified and immature economic structures, inflation and rapid fluctuations in inflation, withholding or other taxes, and operational risks. Special risks associated with investments in emerging country issuers include exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and different auditing and legal standards. Foreign currencies are subject to risks caused by inflation, interest rates, budget deficits and low savings rates, political factors and government controls. Some of the countries where these strategies can invest may have restrictions that could limit the access to investment opportunities. The securities of issuers located in emerging markets can be more volatile and less liquid than those of issuers in more mature economies. Investing in emerging markets involves higher levels of risk, including increased information, market, and valuation risks, and may not be suitable for all investors.
The S&P 500 Index is an unmanaged index generally representative of the U.S. stock market without regard to company size. The Morgan Stanley Capital International (MSCI) Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The MSCI Europe, Australasia, and Far East (EAFE) Index is an unmanaged, market capitalization weighted index that is designed to measure the performance of publically traded stocks issued by companies in developed markets, excluding the United States and Canada. Investors cannot invest directly in any index. Index performance does not reflect deduction for fees, expenses, or taxes.
